If the Demand for Computers Shifts to the Right as Consumers

question 31

Multiple Choice

If the demand for computers shifts to the right as consumers' incomes rise, computers are

• A)inferior goods.
• B)complement goods.
• C)normal goods.
• D)substitute goods.

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Definitions:

Responsibility Accounting

An accounting system that measures the financial performance of different business segments or managers responsible for certain business operations.

Control

The process of monitoring and regulating processes or systems to ensure they meet established standards and objectives.

Cash Budget

A detailed plan showing how cash resources will be acquired and used over a specific time period.

Master Budget

A number of separate but interdependent budgets that formally lay out the company’s sales, production, and financial goals and that culminates in a cash budget, budgeted income statement, and budgeted balance sheet.